The Employers and Industrialists Federation (Oev) issued additional guidance this week on how businesses can join the special employment support scheme in the hotel sector, following the government’s announcement earlier this month.

In a circular sent to affected members, Oev said the Labour Ministry had provided further information on the application process and the procedures that businesses must follow in order to be included in the scheme.

It added that the ministry is expected to announce within the coming week when applications will open. 

According to Oev, applications will be submitted through the Ergani information system, using the access codes that companies already hold for recruitment, termination and employment terms procedures.

Before applying, employers or their authorised representatives must update the actual monthly salary of each employee in the Ergani system by registering the relevant employment terms.

This process must be carried out either as a new submission for newly hired staff or as a correction for existing employees whose salary details need to be updated. 

Once the application platform opens, employers will need to enter the employer registration number, after which a list of the company’s active employees will appear automatically. 

Businesses will then be able to select up to 80 per cent of employees for whom they are seeking support, while also declaring the company’s or self-employed person’s IBAN. 

The application must also be accompanied by an accountant’s report confirming either the reduction in turnover or the occupancy rate, an account certificate showing the IBAN, and a certificate of directors and shareholders issued by the registrar of companies. 

Oev also stressed that, in order to ensure the immediate examination of applications and the timely payment of support, each application may be submitted only once per small medium enterprise (SME).

No changes will be accepted after final submission, the federation added.

What does the government support plan for Cyprus hotels entail?

The government’s support plan for the hotel industry aims to safeguard employment following a sharp downturn in tourism linked to the Middle East crisis.

All hotels and tourist accommodation operating throughout April 2026 are eligible provided they demonstrate a turnover decline exceeding 40 per cent compared to the previous year or an occupancy rate below 60 per cent.

To qualify, a business must have been active in 2025 and remained operational by April 20, 2026, excluding units only performing maintenance or offering limited ancillary services like restaurants.

A primary requirement of the scheme is the preservation of jobs, as employers are strictly prohibited from making any redundancies until May 31, 2026.

The financial assistance consists of a state subsidy covering 30 per cent of an employee’s monthly salary, with an individual payment cap set at €1,324.

While businesses can seek support for up to 80 per cent of their total workforce, they are responsible for paying the remaining portion of the wages and all relevant social insurance contributions for the duration of the period.

Applications are processed through the Ergani information system and must be supported by an approved accountant’s report verifying the financial or occupancy data.